Wednesday, May 18th
2022 Home Equity Loan Reviews
Discover
Discover isn't just for credit cards. Their home equity loans are some of the best in the industry, with extremely competitive rates that will get your attention.
Many Fees Eliminated
Discover eliminates the home equity loan fees that you'll see with other lenders: you won't pay anything for origination, appraisal, or application, and there's zero cash required at closing. You won't find that anywhere else! The only caveat is that if you pay off your loan balance in full during the first 36 months, you'll be obligated to reimburse Discover for some of the closing costs paid on your behalf, up to a maximum of $500. That doesn't apply if you're a resident of Connecticut, Minnesota, New York, North Carolina, Oklahoma or Texas, however.
Home Equity Loan Eligibility Criteria
What are the eligibility requirements for getting a home equity loan with Discover? Although final loan approval depends on your specific situation, here are a few criteria they look for:
- Credit score of at least 620
- Verifiable income and employment
- History of responsible credit use
- Debt-to-income ratio of less than 43%
Wide Range Of Loan Amounts And Terms
Discover offers home equity loans ranging from $35,000 to $200,000, with terms of 10, 15, 20 and 30 years. We recommend that you use their helpful calculators (right underneath the table showing Discover's loan options) to see how much you can borrow or how much you can save if you use your loan for debt consolidation.
Rate And Payment Calculator
Our favorite tool is the Rate & Payment Calculator. Unlike some lenders, who require you to have a soft pull on your credit history in order to get a rate quote, Discover lets you enter your desired loan amount, property value and current mortgage balance, credit score range and state of residence, then voila: you can see your estimated APR over all four available terms (10-30 years). While our initial rate was higher than we expected, Discover explains that their lowest APRs are "available to borrowers requesting at least $80,000 with the best credit and other factors". Sure enough, when we increased our desired loan amount to $80,000, we qualified for their lowest interest rate.
Apply Online Or Over The Phone
Discover makes it easy to apply for your home equity loan online - or you can speak with a representative. If you complete the "apply now" process, it will impact your credit history like any other loan application. But, you have the convenience of getting it all done through the Discover site, any time of day or night.
Fantastic Reputation
And, as you'd expect from a financial services company that has been in business for more than six decades, Discover has a fantastic reputation. This is most clearly demonstrated by their "A+" rating and accreditation from the Better Business Bureau.
Highest Rating
There's just no better option for your home equity loan than Discover. You won't find another provider with zero fees for appraisals, origination or closing, and this lender's rates are particularly competitive on larger loan amounts. For all of these reasons, Discover earns our highest recommendation for your home equity loan.
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Where Can You Go to Find the Best Home Equity Loans?
With interest rates at historic lows, it's a fantastic time to borrow money: to pay off credit card debt, invest in your child's education, make home improvements, or splurge on that big-ticket item you've always wanted.
There are two ways to take out a home equity loan: as a cash-out refinance of your current mortgage or as a standalone second loan. Depending on your circumstances - how much equity you have in your home, the terms of your current mortgage, credit score, and so on - you may find that one approach works better than the other.
Home Equity Loan FAQ
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Shopping around for the best rates on your home equity loan is a wise idea - don't just go to your current lender and assume they'll give you the lowest interest rate or best terms! It's worth your time to consider multiple lenders; even a difference of a few tenths of a percent can save you thousands of dollars in the long run, and some companies will reduce their fees or eliminate them completely just to earn your business.
Fortunately, the internet makes it effortless to compare your options with just a few clicks of the mouse. Many lenders provide their rates upfront, so you'll know if they're worth considering before you even begin an application; others may do a "soft pull" on your credit history, so that they can offer personalized rates based on your specific situation. Plus, some lending platforms give you the ability to compare offers from multiple banks with a single online form, saving you time while connecting you with the best rates on the market.
As you decide which provider to use for your home equity loan, there are several factors that can guide your choice:
- Transparency. How easy is it to see the current interest rates for home equity loans? Does the company disclose all of the fees involved with applying for a loan? Can you access this information without a soft credit check?
- Ease of Use. Do you have to jump through a lot of hoops to get rates tailored to your needs and credit history? How complicated is the application? Can you complete the entire process online, or will you have to speak with a representative?
- Reputation. What do other clients have to say about their experience with the lender? Does the company have a favorable rating with the Better Business Bureau?
TopConsumerReviews.com has reviewed and ranked the top options for home equity loans available today. We hope this information helps you get the money you need to pay down debt, start your home improvement project, or invest in a new business - the possibilities are limitless!
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